US bankruptcy judge Letitia Clark threw out Yukos' Chapter 11 case, ruling that the company’s US presence was too weak to establish US jurisdiction over a Russian company.
Yukos had two Texas bank accounts and its displaced chief finance officer did business from his Houston home. Judge Clark found that a proper forum should include the participation of the Russian government.
Yukos said the court's decision was “regrettable", especially as the judge agreed with Yukos on four of five issues, and that it had no doubt it acted appropriately in bringing the matter to the US Bankruptcy Court.
"We must now consider all the options available to us and determine what our next steps will be," Yukos chief executive Steven Theede said.
The ruling means Yukos must to rely on European arbitration proceedings and appeals in Russian courts to continue its fight against a disputed multi-billion dollar back-tax levy.
It also ends bankruptcy-related lawsuits arising from the auction of Yukos’ main production unit, Yuganskneftegaz.
Yukos had been trying to claim $US20 billion from four Russian state companies – including state-owned giants Gazprom and Rosneft – for violating asset protection given under US bankruptcy law by participating in the December sale of Yuganskneftegaz.
Yukos had complained it was the victim of a Russian government-orchestrated campaign to destroy it and former owner Mihkail Khodorkovsky, who is facing a 10-year prison term for fraud and tax evasion.
The Russian government, which has levied a $US27.5 billion back tax bill on Yukos, had said the US proceedings were irrelevant and US courts had no authority on Russian soil.
But if Judge Clark had accepted jurisdiction, ongoing bankruptcy and litigation proceedings could have hindered Gazprom and Rosneft operations outside Russia.
The US court ruling now out opens the way for the planned merger of Gazprom and Rosneft, which had been on hold because of concerns over the Yuganskneftegaz sale.
Russian analysts believe tax authorities there will continue to carve up Yukos and sell off its other operating units, Samaraneftegaz and Tomskneft.
